There is a very unusual schedule on the week of Christmas for federal institutions and public schools. Schools are typically closed for the entire week of Christmas. In some states, schools are closed for the last two weeks of December and then reopen after New Year’s Day. This is great news for students and teachers alike.
It is obvious that virtually every federal institution will be closed on Christmas Day. In fact, most retail stores are closed as well, even Walmart. Christmas is the only day of the year when Walmart closes. The only businesses you will find open on Christmas Day are restaurants. But, what about the days before and after Christmas? What businesses are open on those days?
You will certainly find retail stores open on Christmas Eve and the day after Christmas. As for federal institutions, that is a different matter. Regardless of what day of the week Christmas falls on, federal institutions will typically be closed for only one business day before or after Christmas. In most cases, a federal institution will be closed on Christmas Eve. So, if Christmas came on a weekend, then those employees would get Friday, Saturday, and Sunday off.
The question that most people have is, “Are banks open on the day after Christmas?” The general answer is YES. December 26th, the day after Christmas, is quite a busy day at banks because so many other people have the day off and it is the perfect time for them to do their banking activities. However, most banks are not open on Christmas Eve. This gives banks at least two consecutive days when they are closed: Christmas Eve and Christmas Day.
For instance, if Christmas were to fall on a Wednesday, then you could expect banks to be closed on Tuesday and Wednesday. Then, on Thursday, they would reopen again. On the other hand, if Christmas were to fall on a Saturday, then the banks would be closed on the day after Christmas just because it is a weekend day. If Christmas were on a Friday, the banks that normally have limited hours on Saturday would be completely closed on that day in most cases. Therefore, banks are only open after Christmas if the day after Christmas is a weekday.
What you need to understand is that banks are companies just like any other business. They only follow the federal holiday schedule because the deposits of their bank are insured by a federal institution called the Federal Deposit Insurance Corporation. According to the current federal holiday calendar, the only federal holiday in December is Christmas Day on the 25th of the month. It does not set any holiday guidelines for December 24th or 26th. This means that each federal institution can decide for themselves whether they close on the 24th or 26th. There is no federal requirement to do so.
Why the Calendar Looks “Unusual” in Some Years
The week of Christmas can feel confusing because the calendar changes everything. When December 25th lands in the middle of the week, people often expect a “normal” work week around it. But when it lands close to a weekend, the schedule can look completely different even though the holiday is the same.
This is where many people get surprised. Two years can have the same holiday, but the practical impact on closures, staffing, and business hours can be dramatically different just based on what day of the week Christmas falls on.
Christmas Day vs. the “Observed” Federal Holiday
A key detail that many people miss is the difference between the holiday date and the “observed” holiday. Christmas is always on December 25th, but if the 25th falls on a Saturday or Sunday, the day off is often observed on a nearby weekday.
For example, if Christmas falls on a Saturday, many organizations will observe the holiday on Friday, December 24th. If Christmas falls on a Sunday, many will observe it on Monday, December 26th. This is why you will sometimes hear people say, “Christmas is observed on the 26th this year,” even though Christmas Day itself is still on the 25th.
This one rule explains why some years have closures on the 24th or 26th that do not happen in other years.
What Counts as a Federal Institution (and What Does Not)
When people say “federal institutions,” they are usually talking about federal offices and services that follow federal employee schedules. This typically includes federal agency offices, federal courts, and many administrative operations that depend on federal staffing.
However, not everything that feels “government-related” is federal. Many services people interact with are run by states, counties, or cities. That means a local courthouse, DMV office, or public service building may follow a completely different schedule depending on state law, union contracts, and local policy.
So, even if one federal office is closed, a nearby public office might still be open (or vice versa). The label matters more than most people realize.
The Federal Reserve’s Role in Bank Closures
Banks do not close just because it is inconvenient to be open. They make decisions based on staffing, customer demand, and, most importantly, how the banking system itself is operating that day.
The reason the federal holiday schedule matters is that major banking systems rely on national settlement and payment infrastructure. If that infrastructure is not operating at full capacity due to a holiday observance, many banks will align their branch hours with that reality.
This is why you can see one bank operating with limited services while another bank is completely closed. Even when a branch is open, some transactions may not fully process until the next business day.
What Happens to Deposits, Transfers, and Bill Payments
Even when a branch is closed, banking does not stop. Online banking, mobile deposits, ATMs, and card purchases can still work normally. The issue is not whether you can initiate an action, but when it officially posts and settles.
This matters most for things like direct deposits, bill-pay processing, and bank-to-bank transfers. A payment you schedule may leave your account on time, but the receiving bank may not show the credit until the next business day. The same is often true for checks, ACH transfers, and other back-office processing.
That is why some people feel like “the bank was open, but nothing moved.” It is not always about the lobby hours. It is about the processing calendar behind the scenes.
Mail, Package Delivery, and Government Services
Many people plan their errands based on more than just bank hours. Mail service, shipping, and government counters can be just as important during the Christmas week, especially for last-minute documents and time-sensitive deliveries.
The important point is that different services follow different rules. Some operations fully shut down for the holiday, while others operate on reduced schedules. In some cases, you may find offices open but running with limited staffing, shorter hours, or reduced service menus.
If you need a specific service, like passport support, licensing, or official documents, the safest assumption is that hours may be reduced during the Christmas week unless the office explicitly posts normal business hours.
Why Schools Often Close the Whole Week
Public school schedules are not designed around federal holidays. They are designed around academic calendars, district policies, and contract requirements for teachers and staff.
That is why many districts close for the entire Christmas week, and some close for a longer “winter break” that stretches through New Year’s Day. This is not because every day is a holiday. It is because school systems prefer to avoid scattered attendance, substitute staffing problems, and partial-week instruction.
In other words, schools often close the full week simply because it is cleaner and more predictable for families and administrators.
Common Schedule Scenarios That Cause Confusion
Most confusion comes from a handful of repeat patterns. Here are the ones that impact people the most:
If Christmas is on a weekday, many offices close on the 25th and reopen on the next business day, while some businesses choose to reduce hours on the 24th.
If Christmas is on a Saturday, Friday the 24th is often treated like the holiday by many organizations, which can make it feel like Christmas “starts early.”
If Christmas is on a Sunday, Monday the 26th is often treated like the holiday by many organizations, which can make it feel like Christmas “extends” into the following week.
Once you know these patterns, the schedule stops looking random and starts looking predictable.
In Summary
If you want to find out for sure if your bank is open on the day after Christmas, the best thing to do is contact your bank and ask them. If you were to visit your local branch or call their toll-free number, the banking employees will be more than happy to give you the schedule for the month of December.
Once you receive the schedule, it will likely confirm the scenarios that were described in this article. The day after Christmas will be open if it is a weekday and the day before Christmas will likely be closed. That is the common practice of most banks in the United States.
Leave a Reply